Rates of inheritance tax.
Section 86
SEC. 86. Rates of inheritance tax. — In addition to the estate tax imposed by section 85, there shall be levied, assessed, collected and paid an inheritance tax equal to the sum of the following percentages of the value of the individual share of each heir or beneficiary in the net estate, after deducting the amount of the estate tax, of every decedent, whether a resident or non-resident of the Philippines: (a) When the surviving spouse, a legitimate, recognized natural, or adopted child, or legitimate descendant, or ascendant, or either of the adopting parents is the beneficiary, or the father or mother who had recognized him as natural child, and in every case where the beneficiary receives the property exclusively for educational or charitable purpose, there shall be collected upon the share which corresponds to each beneficiary in the inventoried property a tax according to the following schedule: One per centum of the amount of the share not in excess of ten thousand pesos; Two per centum of the amount by which the share exceeds ten thousand pesos and does not exceed thirty thousand pesos; Three per centum of the amount by which the share exceeds thirty thousand pesos and does not exceed fifty thousand pesos; Four per centum of the amount by which the share exceeds fifty thousand pesos and does not exceed eighty thousand pesos; Five per centum of the amount by which the share exceeds eighty thousand pesos and does not exceed one hundred and ten thousand pesos; Six per centum of the amount by which the share exceeds one hundred and ten thousand pesos and does not exceed one hundred and fifty thousand pesos; Seven per centum of the amount by which the share exceeds one hundred and fifty thousand pesos and does not exceed one hundred and ninety thousand pesos; Eight per centum of the amount by which the share exceeds one hundred and ninety thousand pesos and does not exceed two hundred and forty thousand pesos; Nine per centum of the amount by which the share exceeds two hundred and forty thousand pesos and does not exceed two hundred and ninety thousand pesos; Ten per centum of the amount by which the share exceeds two hundred and ninety thousand pesos and does not exceed three hundred and fifty thousand pesos; Eleven per centum of the amount by which the share exceeds three hundred and fifty thousand pesos and does not exceed four hundred and twenty thousand pesos; Twelve per centum of the amount by which the share exceeds four hundred and twenty thousand pesos and does not exceed five hundred thousand pesos; Thirteen per centum of the amount by which the share exceeds five hundred thousand pesos and does not exceed six hundred thousand pesos; Fourteen per centum of the amount by which the share exceeds six hundred thousand pesos and does not exceed seven hundred and twenty thousand pesos; Fifteen per centum of the amount by which the share exceeds seven hundred and twenty thousand pesos and does not exceed eight hundred and fifty thousand pesos; Sixteen per centum of the amount by which the share exceeds eight hundred and fifty thousand pesos and does not exceed one million pesos; and Seventeen per centum of the amount by which the share exceeds one million pesos. Where the property is received for educational or charitable purposes, it shall be the duty of the person or persons in charge thereof to submit from time to time a report of the administration and use of the property to the Collector of Internal Revenue and within twenty days after demand therefor has been made by the said Collector. (b) When a brother or sister, who is a legitimate or acknowledged natural child or a common father or mother, or both, or the children of such brother or sister, or any descendant mentioned as such in the will and not included in the subsection (a) hereof is the beneficiary, there shall he collected the same tax fixed in said subsection with an increase of one hundred per centum. (c) When other relatives within the sixth degree not included in the two next preceding subsections are beneficiaries, there shall be collected the same tax fixed in subsection (a) with an increase of two hundred per centum. (d) When a relative by affinity within the same degree as those mentioned in subsection (a) and (b), with the exception of the surviving spouse, is the beneficiary, there shall be collected the same tax fixed in subsection (a) with an increase of three hundred per centum. (c) When strangers are beneficiaries there shall be collected upon the share which corresponds to each beneficiary in the inventoried property a tax according to the following schedule: Ten per centum of the amount of the share not in excess of ten thousand pesos; Twenty per centum of the amount by which the share exceeds ten thousand pesos and does not exceed thirty thousand pesos; Thirty per centum of the amount by which the share exceeds thirty thousand pesos and does not exceed fifty thousand pesos; Thirty-five per centum of the amount by which the share exceeds fifty thousand pesos and does not exceed eighty thousand pesos; Forty per centum of the amount by which the share exceeds eighty thousand pesos and does not exceed one hundred and ten thousand pesos; Forty-five per centum of the amount by which the share exceeds one hundred and ten thousand pesos and does not exceed one hundred and fifty thousand pesos; Fifty per centum of the amount by which the share exceeds one hundred and fifty thousand pesos and does not exceed one hundred and ninety thousand pesos; Fifty-five per centum of the amount by which the share exceeds one hundred and ninety thousand pesos and does not exceed two hundred and forty thousand pesos; Sixty per centum of the amount by which the share exceeds two hundred and forty thousand pesos and does not exceed two hundred and ninety thousand pesos; Sixty-five per centum of the amount by which the share exceeds two hundred and ninety thousand pesos and does not exceed three hundred and fifty thousand pesos; Sixty-eight per centum of the amount by which the share exceeds three hundred and fifty thousand pesos and does not exceed four hundred and twenty thousand pesos; Seventy per centum of the amount by which the share exceeds four hundred and twenty thousand pesos and does not exceed five hundred thousand pesos; Seventy-one per centum of the amount by which the share exceeds five hundred thousand pesos and does not exceed six hundred thousand pesos; Seventy-two per centum of the amount by which the share exceeds six hundred thousand pesos and does not exceed seven hundred and twenty thousand pesos; Seventy-three per centum of the amount by which the share exceeds seven hundred and twenty thousand pesos and does not exceed eight hundred and fifty thousand pesos; Seventy-five per centum of the amount by which the share exceeds one million pesos. For the purposes of this tax, strangers are deemed those relatives by consanguinity of the seventh or more remote degree in the collateral line, and all relatives by affinity with the exception of the spouse and those mentioned in subsection (d) of this section: Provided, however, That where the beneficiary is a domestic servant, or a trusted employee, there shall be collected on the first two thousand pesos and five thousand pesos, respectively, the tax fixed in subsection (a) of this section, and on the excess, the tax prescribed in this subsection. In cases of property which by the will of the testator should be divided among the poor, without the designation of any particular persons, or which should be disposed of for masses or other pious works, there shall be collected the tax at the rate fixed in this subsection upon the total amount of said property. In case the property is transmitted to the heirs subject to the usufructuary interest, use, or habitation, or annuity of a third person, the tax shall be based on the value of the inventoried property less that of the usufruct, use or habitation, or annuity determined as hereinafter provided.